BSE Equity Derivatives Segment Transaction Charges
Notices Media Release Trading Holidays BSEPlus Contact Us
हिन्दी     मराठी     ગુજરાતી


Derivatives Segment Transaction Fees



BSE Limited has revised transaction fees in Equity Derivatives segment of the Exchang ewith effect from February 10th , 2014.

Basis of applicability of transaction fees

For stock futures and index futures, revised transaction fees will be applicable on the value of the transactions (price X quantity).

For stock options and index options, revised transaction fees will be applicable on the Premium value (premium X quantity) at the time of trading.

Definition of Passive Orders and Active Orders

Passive Orders: Passive orders are defined as the orders that are already existing in the order book at the time of matching (trade taking place).

Active Orders: Active orders are defined as the orders that are matched against the orders already existing in the order book at the time of matching (trade taking place)

The following transaction fees are applicable with effect from February 10th,2014 in Exchange's Equity Derivatives segment:

Particulars Passive orders Active orders
Stock Futures and Index futures (on execution) Nil Rs.50 per Crore of Trade Value
Stock Options and Index Options (on execution) On which LEIPS Scheme is running Nil Rs.50 per crore of Premium Value

Particulars Passive order (price maker) to receive Active order (price taker) to pay
Stock Options and Index Options (on execution) on which LEIPS is not running. Rs.2400 per crore of premium value Rs.2500 per crore of Premium Value

The above transaction fees will be applicable uniformly across all valid orders executed in the Exchange's Equity Derivatives segment. Executed orders will be identified as passive or active on the basis of their respective time stamps assigned by the BSE system. As per the Exchange trading system design, two orders cannot have the same time stamp.
To know more on the transaction fees, please refer to the FAQs

For Reference check Notice no. 20140203-22 dated, February 03, 2014

FAQs

1) What are Passive Orders?

For every executed trade, the order (Limit Orders) which has been placed first on the basis of the order time stamp assigned by BSE system will be considered as a Passive Order.

2) What are Active Orders?

For every executed trade, the order (Market Order or Limit Order) which has been matched against an existing order (or Passive Order) will be considered as an Active Order.

3) What is the advantage to the member in placing Passive Orders?

The advantage in placing Passive Orders is –
  • Stock & Index Futures: For every executed trade, the Exchange will not charge anything to the member who has placed the passive order.
  • Stock & Index Options: For every executed trade, the Exchange will not charge anything to the member who has placed the passive order.

4) Can you show me an example of the order book along with the transaction fees levied on them?

Example 1: Index & Stock Futures

Time * Bid Qty Bid Price Offer Qty Offer Price Order Type Transaction fees (Rs./1,00,000)
10.00.01 500 100     Passive 0.00
10.01.05     1000 100 Active 0.50
           
10.01.05 Trade at Rs.100 for 500 contracts
             
10.02.05     500 100 Passive 0.00
10.03.00 300 100     Active 0.50
             
10.03.00 Trade at Rs.100 for 300 contracts

* - Time stamp reference is to the time assigned by the BSE system, & not order entry time by the member.

Example 2: Index & Stock Options (on which LEIPS is running)

Time * Bid Qty Bid Price Offer Qty Offer Price Order Type Transaction fees (Rs./1,00,000)
10.00.01 500 100     Passive 0.00
10.01.05     1000 100 Active 0.50
           
10.01.05 Trade at Premium price Rs.100 for 500 contracts
             
10.02.05     500 100 Passive 0.00
10.03.00 300 100     Active 0.50
             
10.03.00 Trade at Premium price Rs.100 for 300 contracts

* - Time stamp reference is to the time assigned by the BSE system, & not order entry time by the member.

5) How will charges be levied if two orders are placed at the same time?

Executed orders are identified as passive or active on the basis of their respective time stamps assigned by the BSE System. As per the Exchange trading system design, two orders cannot have the same time stamp.

6) What if the order placed gets matched with a Stop Loss Order?

When a trade is executed, the order that is placed first in the system, based on the order time stamp which is assigned by BSE system will be considered as a Passive Order.

E.g.: Case Study
  • At 10:02:00 am: Client A places a Stop Loss order for 100 contracts of Security XYZ at Rs 95.00
  • At 10:10:05 am: Client B places buy order of 100 contracts of Security XYZ at Rs 95.00 in the system
  • At 10:15:00 am: Market price of Security XYZ falls to Rs 95.00
  • At 10:15:00 am: Client A’s order for 100 contracts of Security XYZ at Rs 95.00 is added to the order book
  • At 10:15:00 am: Trade gets executed between clients A & B at Rs 95.00
  • Stop Loss order of Client A will be considered as the Active Order, although it was submitted to the exchange prior to Client B’s order. Time Stamp is based on when the order is entered into the exchange’s system. Hence Buy Order of Client B will be considered as Passive Order.
  • Hence, Client A will be levied a transaction fee @ Rs. 0.50 / Rs. 1 lakh of notional value and Client B will not be charged a transaction fee.

7) How will the Members identify their executed orders as passive orders / active orders?

Effective December 29, 2009, a new Broker Query File of Derivatives segment containing information on Passive and Active orders will be available for download to identify their executed trades.

8) What is the name and format for the Derivatives Broker Query file?

Filename: DBRddmmyy (where dd- day; mm – month; yy – year)
Format is: The new Derivatives Broker Query File will contain following fields –
GroupId | TraderCode | ProductCode | ProductType | SeriesId | SeriesCode | Buy/Sell Field | Quantity | Price | ClientCode | ClientType | TradeId | TradeDate | TradeTime | OrderDate | OrderTime | OrderId | Transaction Type | AO / PO flag

9) What is the location of this file?

This file will be available in Dload32->General->Settlement Option->DataFiles-> BRK Files (Derivatives) option after 5:05PM.
Similar information will be made available through DTSS shortly which will be communicated in due course.

10) How can members & their clients take advantage of the revised transaction fees?

The Exchange endeavours to incentivise members & their clients for placing more Passive Orders thereby filling up the order book in the system. This will attract other market participants to avail of the emerging opportunities to trade in BSE’s Derivatives segment. Consequently, this would help in better price discovery and lower impact costs.

For details of the Liquidity Enhancement & Incentive Programme (LEIPS) offered by the Exchange in the Derivatives segment kindly refer to the following weblink - LEIPS